Probability that the average loss from fire is no greater

Reference no: EM131764264

Question: More on insurance An insurance company claims that in the entire population of homeowners, the mean annual loss from fire is μ = $250 and the standard deviation of the loss is σ = $1000. The distribution of losses is strongly right-skewed: many policies have $0 loss, but a few have large losses. An auditor examines a random sample of 10,000 of the company's policies. If the company's claim is correct, what's the probability that the average loss from fire in the sample is no greater than $275? Show your work.

Reference no: EM131764264

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